2026-27 FAFSA Changes

Changes Coming to Financial Aid in 2026-27

Starting on July 1, 2026, significant changes to financial aid will be in effect as a result of the One Big Beautiful Bill Act. Below you will find an overview of what we currently know about how the changes to the law may impact financial aid in the 2026-27 academic year.

1. Student Loan Caps: Starting July 2026, new annual and aggregate caps will be placed on federal student loans for graduate and professional students, as well as Parent PLUS loans. Graduate students will be capped at $20,500 per academic year with a lifetime maximum of $100,000 (previously $138,500). Parent PLUS loans will be limited to $20,000 per year with a $65,000 lifetime maximum per student.
2. Graduate PLUS Loan Elimination: Beginning in July 2026, the Graduate PLUS program will be eliminated. Current borrowers however will be able to continue borrowing under the current terms and conditions for up to three academic years or until the end of their program, whichever is first.
3. Pell Grant Eligibility: Changes to the Student Aid Index calculation may result in fewer students being eligible for Pell Grants. However, starting in July 2026, it is expected that low-income students will be able to use Pell Grants for short-term job training programs that meet specific criteria for high-skill or in-demand careers.
4. Student Loan Repayment: Effective July 2026, new federal student loan borrowers will choose from two repayment plans: a fixed monthly plan or a new income-based Repayment Assistance Plan (RAP). RAP replaces the Saving on a Valuable Education (SAVE) plan and requires borrowers to pay between 1% and 10% of their income, with a minimum payment of $10 and loan forgiveness after 30 years. Borrowers currently on the SAVE plan have until July 1, 2028, to switch or be automatically enrolled in RAP. Please check with your loan servicer to discuss repayment options for your loans.
5. FAFSA Form Changes: How the Student Aid Index calculation is impacted by assets will also change. This calculation will now exclude the net worth of family-owned businesses with 100 or less full-time employees, the net worth of a farm where a family resides, and the net worth of commercial fishing businesses owned and controlled by a family.

If you have specific questions regarding your financial aid, please contact our Student Finance Advising team at 855-212-6700 or financialaid@csuglobal.edu.

*Last updated on 01/13/2025